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Use Figure: Fiscal Policy II

Question 97

Multiple Choice

Use Figure: Fiscal Policy II. If the economy is operating at point A, then there is _____ gap, and the government should use _____ fiscal policy to close this gap.

Fiscal Policy II
Use Figure: Fiscal Policy II. If the economy is operating at point A, then there is _____ gap, and the government should use _____ fiscal policy to close this gap. ​ Fiscal Policy II   A)  an inflationary; an expansionary B)  a recessionary; an expansionary C)  an inflationary; a contractionary D)  a recessionary; a contractionary


A) an inflationary; an expansionary
B) a recessionary; an expansionary
C) an inflationary; a contractionary
D) a recessionary; a contractionary

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